On 7 August 2026, the Department for Education (“DfE”) launched a consultation on the proposed Teachers’ Pension Scheme (TPS) Miscellaneous (Amendment) Regulations 2027 (“the Regulations”). The Regulations are necessary to adjust the member contribution rates following the most recent valuation. The DfE has said that further amendments are also required to clarify existing provisions, align the Regulations with DfE policy and ensure the scheme continues to operate as intended. The purpose of the consultation is to seek responses from those likely to be affected by the proposed Regulations which includes school employers. The consultation closes on 30 October 2026. Following consideration of responses, the DfE intends to finalise the amendments, which are expected to come into force on 1 April 2027.
Background
The TPS provides pension benefits to eligible teachers in England and Wales, primarily in schools, multi-academy trusts (“MATs”) and local authorities. Schools and MATs as employers will be aware that the TPS final salary (legacy) scheme closed on 31 March 2022. From 1 April 2022 all active members built up their pension benefits in the career average (reformed) section of the scheme.
Before proposing the amendments under the Regulations and starting consultation, the DfE assessed the impact of the proposed changes on members with protected characteristics, in accordance with the DfE’s Public Sector Equality Duty. The DfE found that younger teachers were more likely to be in lower salary bands and older teachers in higher bands, reflecting normal career progression, and considered lower TPS contribution rates for lower earners to be proportionate. The DfE also noted that TPS membership is predominantly female and that, although men are more likely to be in higher salary bands, the TPS contribution structure applies equally regardless of sex. Finally, TPS contributions are based on actual earnings rather than full-time equivalent salaries, meaning part-time workers are not considered disproportionately disadvantaged.
What is changing?
Changes to member contribution rates
Members currently contribute between 7.4% to 12.0% of pensionable pay depending on earnings, which is designed to achieve an overall average member contribution of 9.6%. Following a 2024 TPS valuation, the DfE proposes reducing contribution rates for members from April 2027, with most rates reducing by 0.2 percentage points (the lowest band stays at 7.4%) and revised salary thresholds. It is said that the changes are intended to protect lower-paid members, maintain fairness, and minimise administrative burdens.
It is anticipated that around 780,000 active TPS members will subsequently see a small rise in take-home pay with no change to pension benefits, for the period from 1 April 2027 to 31 March 2029.
Significant reduction in employer contributions
From 1 April 2027, the employer contribution rate is expected to substantially decrease from the current 28.68% to 17.68%, reflecting actuarial assumptions rather than any change to pension benefits. For schools and MATs, the reduction may result in significant savings in pension costs.
Bereaved Partner’s Paternity Leave
The DfE proposes amending the definition of paternity leave in the TPS to expressly include Bereaved Partner’s Paternity Leave (introduced in 2024), so it is treated in the same way as ordinary paternity leave for pension purposes.
Automatic re-enrolment
Under the Pensions Act 2008, individuals who are already participating in another qualifying pension scheme are not required to be automatically re-enrolled every three years. However, the TPS regulations do not currently reflect this position. The DfE proposes aligning the TPS with this position, avoiding unnecessary administrative duplication.
Clarification of ill-health retirement provisions
The DfE proposes clarifying that an out-of-service member’s ill-health retirement pension ends where the individual subsequently begins any form of gainful employment, reflecting the scheme’s existing eligibility criteria. This would apply to new awards from 1 April 2027, noting existing beneficiaries may also be affected if their circumstances change.
Changes to short-term survivor pensions
Under the current TPS regulations, short-term survivor and child pensions are calculated using technical definitions of pension entitlement rather than the pension in payment at the member’s death. The DfE proposes calculating them instead by reference to the pension being paid at the date of death, including removing provisions that disregard pension-sharing reductions.
In some circumstances, this will mean lower payments for surviving beneficiaries. However, the DfE considers the approach simpler and more consistent with the pension being received immediately before death. The proposed changes would apply only to deaths on or after 1 April 2027. Existing awards already in payment would not be affected.
Next steps for Schools and MATs
Any schools and MATs affected by these proposals should consider responding to the consultation by 30 October 2026 particularly if the proposed changes will likely affect your organisation’s workforce planning, pension administration or staffing budgets. The most significant practical impact for Schools and MATs will likely be the sharp fall in employer contribution rates from April 2027, which appears likely to have the biggest financial impact.
Schools and MATs should also review their pension administration arrangements to ensure they are prepared for the proposed changes relating to automatic re-enrolment, family leave provisions and ill-health retirement administration.
This briefing is not intended to be a definitive statement of the law and is correct at the time of publication. It should not be taken as a substitute for professional legal advice. It does not represent the views of Winckworth Sherwood or any of the authors.
If you require further advice or assistance regarding the proposed changes to TPS, or any other HR or employment law issue your school is facing, or you wish to discuss our retainer packages for schools, please contact our dedicated Schools HR team on schoolshr@wslaw.co.uk or 0345 026 8690.